|
The Executor or Executrix of an estate often finds himself or herself faced with
the duty of being the Personal Representative of the Probate of the estate, a legal
process that involves the accounting of the assets, liabilities and taxes. Below
you will find a general list of the duties and liabilities of the Personal Representative.
These duties and liabilities may vary depending on your state and county. This site
does not provide legal advice.
Duties & Liabilities of Personal Representative
When the court appoints you as personal representative of an estate, you become
an officer of the court and assume certain duties and obligations. An attorney is
often sought to advise on these matters but in not required. You should
however understand the following:
1. Managing the Estate's Assets
a. Prudent investments You must manage the estate assets with the care of
a prudent person dealing with someone else's property. This means that you much
be cautious and may not make any speculative investments.
b. Keep estate assets separate You must keep the money and property in this
estate separate from anyone else's, including your own. When you
open a bank account
for the estate, the account name must indicate that it is an estate account and
not your personal account. Never deposit estate funds in your personal account or
otherwise mix them with your or anyone else's property. Securities in the estate
must also be held in a name that shows they are estate property and not your personal
property.
c. Interest-bearing accounts and other investments Except for checking accounts
intended for ordinary administration expenses, estate accounts mush earn interest.
You may deposit estate funds in insured accounts in financial institutions, but
you should consult with an attorney before making other kinds of investments.
d. Other restrictions There are many other restrictions on your authority
to deal with estate property. You should not spend any of the estate's money unless
you have received permission from the court or have been advised to do so by an attorney. You may reimburse yourself for official court costs paid by you to the
county clerk and for the premium on your bond. Without prior order of the court,
you may not pay fees to yourself or to your attorney, if you have one. If you do
not obtain the court's permission when it is required, you may be removed as personal
representative or you may be required to reimburse the estate from you own personal
funds, or both. You should consult with an attorney concerning the legal requirements
affective sales, leases, mortgages, and investments of estate property.
2. Inventory of Estate Property
a. Locate the estate's property You must attempt to locate and take possession
of all the decedent's property to be administered in the estate.
b. Determine the value of the property This can be done yourself or you
can consult a professional to assist you.
c. Final an inventory and appraisal You must file with the court an inventory
and appraisal of all the assets in the estate.
d. File a change of ownership At the time you file the inventory and appraisal,
you must also file a change of ownership statement with the county recorded or assessor
in each county where the decedent owned real property at the time of death.
3. Notice to Creditors
You must mail a notice of administration to each known creditor of the decedent
within two to four months after your appointment as personal representative.
4. Insurance
You must mail a notice of administration to each known creditor of the decedent
within four months after your appointments as personal representative.
5. Record Keeping
a. Keep accounts You must keep complete and accurate records of each
financial transaction affecting the estate. You will have to prepare an account
of all money and property you have received, what you have spent, and the date of
each transaction. You must describe in detail what you have left after the payment
of expenses.
b. Court review Your account will be reviewed by the court. Save your receipts
because the court may ask to review them. If you do not file your accounts as required,
the court will order you to do so. Your may be removed as personal representative
if you fail to comply.
|